Sep 16

Daily Market Commentary : 15th SEP 2016

The Indian equity market spent the entire day in a narrow range after the recent slide and Nifty ended marginally higher for the second consecutive session after a dull session on Thursday. The domestic market closed higher for the second consecutive session. However, as the day progressed, a sudden bout of buying in the FMCG, pharma, energy and telecom stocks lifted the benchmarks. On the other hand, consumer durables, utilities, power, banking, auto and oil & gas stocks were under pressure. Nifty closed with a gain of 16 points at 8,743, while BSE Sensex ended with a gain of 41 points at 28,413.

On the global front, Asian stocks closed on a mixed note. Markets in China, Taiwan and South Korea were closed for public holidays on Thursday.

European stocks were mixed ahead of monetary policy decision from the Bank of England. The FTSE 100 and DAX were marginally up, while CAC 40 was trading in red.

Reliance Communications Ltd dropped 2.4% to Rs.49.80. RComm has signed an agreement to merge its wireless business with smaller rival Aircel Ltd. The new entity will combine R-Com’s wireless business and Aircel’s operations in India.

Sun Pharmaceutical Industries Ltd advanced 1%. The pharma company said its buyback offer of 75 Lakh equity shares will open on 22 September. The issue will close on 5 October.

Yes Bank slipped 2.5% after the media report, the Securities & Exchange Board of India is looking into the lender’s notices to stock exchanges about the planned equity placement (QIP).

Ashok Leyland tumbled 3.6% to Rs.81.55. The Board of automobile components firm Hinduja Foundries Ltd has given its nod for amalgamating the company with Ashok Leyland subject to regulatory and shareholders approval of both the companies.

BEML dropped 12.3% to Rs.900. BEML Ltd’s standalone net loss widened to Rs.107.10 crore for the quarter ended June 30, 2016. The company had posted a net loss from ordinary activities after tax of Rs.68.10 crore in the year-ago period, the company said in a BSE filing.

NBCC gained 1.6% to Rs.253. NBCC (India) Ltd reported 16% increase in consolidated net profit to Rs.47.09 crore for the quarter ended June 30.

Maruti Suzuki India Limited gained 1.5% after the auto company announced to partner Uber India through a Memorandum of Understanding (MoU). Under the MoU, the Company will train over 30,000 individuals/Uber partner-drivers in safe driving over a period of 3 years.

Gujarat NRE Coke Ltd dropped 2.8% on the BSE. The company’s standalone net loss widened to Rs.108.80 crore for the quarter ended June 30, 2016 as against a net loss of Rs.60.66 crore in the year-ago period.

IVRCL zoomed 2% to Rs.5.52. IVRCL has posted a loss of Rs.151.85 crore for the first quarter ended June 30, 2016, as against a loss of Rs.189.65 crore for the corresponding quarter last year on a standalone basis.

MMTC soared 3.6% to Rs.47.05. MMTC reported a net loss of Rs.7.01 crore for the first quarter ended June 30, 2016. The company had incurred a net loss of Rs.30.55 crore during the corresponding quarter of 2015-16.

The rupee was trading down five paise at 66.94 per US dollar.

Out of 1,458 stocks traded on the NSE, 662 declined and 730 advanced today.

Top 5 Nifty Gainers: Hero Motocorp (3.13%), Bajaj Auto (2.78%), Maruti Suzuki (2.60%), Adani Portz and Sez (2.58%) and Axis Bank (2.42%)

Top 5 Nifty Losers: HDFC (-0.10%), Lupin Ltd (-0.08%) and TCS (-0.03%)

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